Solution-At what rate does maria expect business to grow

At what rate does maria expect business to grow next year

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Reference no: EM131559421

Qusetion: REVENUE PROJECTION Maria sees the growth of her business for the upcoming year as being tied to the gross domestic product (GDP). She believes that her business will grow (or contract) at the rate of 5%, 4.5%, 3%, 0%, or -0.5% per year if the GDP grows (or contracts) at the rate of between 2 and 2.5%, between 1.5 and 2%, between 1 and 1.5%, between 0 and 1%, and between -1 and 0%, respectively. Maria has decided to assign a probability of .12, .24, .40, .20, and .04, respectively, to each outcome. At what rate does Maria expect her business to grow next year?

Reference no: EM131559421

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At what rate does maria expect business to grow next year

Reference no: EM131559421

Reference no: EM131559421

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